A Chinese PS producer told SSESSMENTS.COM that the company foresees a positive outlook for PS in China despite currently in the traditional low season. The producer mentioned that this year, the situation is not the same as the previous years. Demand for PS end-products in the domestic and export market remains good. Since the national exam for university entrance (Gaokao) in China is delayed to July, when the weather is hot, due to the COVID-19 pandemic, some schools need to install air conditioners. Therefore, the demand for the product increased. Meanwhile, in the export market, the demand for refrigerators is increasing as people do not want to go out often to do groceries shopping and prefer to have additional refrigerators at home to keep food.
In line with good demand for end-products, demand for PS resins is also healthy and stable week over week, the producer informed. On the other hand, supply for PS is tight because previously in Q1 during lockdown in China, Chinese PS producers run at low production rate and keep low inventory level. Considering tight supply and good demand, there are no risks for the PS market in the near term, the producer added. The producer further revealed to SSESSMENTS.COM that owing to the tight supply, the producer increased offers for GPPS Injection and HIPS Injection by CNY200/ton ($28/ton) compared to last week.
Upstream, the inventory level of SM in China is still high. The producer informed SSESSMENTS.COM that the inventory at coastal China stood at 317,500 tons as of July 9, down by 3,900 tons from last week. On traders’ hands, the inventory stood at 214,000 tons, digested by 5,900 tons compared to the same period. Styrene prices are unable to increase due to the high inventory, the producer opined.
